Encoder IC Market Demand Accelerating Worldwide - Updated Forecast and Market Intelligence 2025 to 2031

Market Summary -

The global market for Encoder IC was estimated to be worth US$ 501 million in 2024 and is forecast to a readjusted size of US$ 744 million by 2031 with a CAGR of 5.9% during the forecast period 2025-2031.

Accourding to QY Research has released a new publication titled "Global Encoder IC Market Share and Ranking, Overall Sales and Demand Forecast 2025-2031." This comprehensive study provides an in-depth evaluation of the worldwide Encoder IC industry, uncovering the major forces influencing market growth and delivering high-value insights for investors, industry leaders, and strategic decision-makers. The report examines critical elements such as market dynamics, evolving technologies, segmentation trends, regional developments, and the competitive landscape. With data backed by rigorous research and expert interpretation, it offers an authoritative guide to understanding the macroeconomic and microeconomic factors reshaping the global market.

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This report provides a comprehensive assessment of recent tariff adjustments and international strategic countermeasures on Encoder IC cross-border industrial footprints, capital allocation patterns, regional economic interdependencies, and supply chain reconfigurations.

An encoder is a sensing device that provides feedback. Encoders convert motion to an electrical signal that can be read by some type of control device in a motion control system, such as a counter or PLC. The encoder sends a feedback signal that can be used to determine position, count, speed, or direction. A control device can use this information to send a command for a particular function.

An Encoder IC (Integrated Circuit) is a digital logic IC designed to convert one digital code to another, commonly used to translate a set of inputs into a unique binary code. These ICs take multiple input lines and produce a corresponding multi-bit output, often translating decimal values to binary or converting parallel data to serial, particularly in applications like remote control systems, security alarms, and position sensing.

Recent Developments -

The authors of the report have put forward recent developments by key participants. Other strategic activities by manufacturers such as M&A, joint ventures, collaborations, innovation, product offerings, and research and development activities are highlighted in this research study. This will keep the users up-to-date about the undertakings and give the users a crystal-clear understanding of the key advancements emerging in the business.

What is Driving the Encoder IC Market Drivers ?

The Encoder IC (Integrated Circuit) market is experiencing significant growth, driven by the increasing adoption of automation, robotics, and smart electronics across various industries. Encoder ICs-essential components for motion control and feedback systems-translate mechanical motion into electrical signals for precise position, speed, or direction sensing. These chips are essential in everything from factory automation and robotics to consumer electronics, automotive systems, and medical devices.

1. Rising Demand in Industrial Automation

One of the most significant drivers of encoder IC market growth is the rapid expansion of Industry 4.0 and the global shift toward smart factories. Encoder ICs are key elements in motor control systems used in conveyor belts, robotic arms, CNC machinery, and elevators. The need for real-time feedback, precision motion control, and reduced downtime in automated systems is fueling the demand for high-performance encoders-especially optical and magnetic encoder ICs.

2. Automotive Sector Expansion

Modern vehicles increasingly rely on encoder ICs for steering angle detection, throttle control, pedal position sensing, gearbox feedback, and electric motor synchronization. With the rise of electric vehicles (EVs), ADAS (Advanced Driver Assistance Systems), and autonomous driving, the demand for reliable and compact encoder ICs with high-resolution capabilities is expanding rapidly. Automotive-grade encoder ICs also require high durability in harsh environments, boosting demand for magnetic and capacitive types.

3. Miniaturization and Integration

As devices become smaller and smarter, there is a trend toward miniaturized encoder ICs that integrate additional functionality such as signal processing, I2C/SPI communication, or embedded diagnostics. This trend supports the development of compact medical devices (like infusion pumps or robotic surgical systems) and precision tools in consumer electronics (like drones, cameras, and 3D printers).

Market Segmentation and Regional -

By Type

Magnetic Encoder IC
Optical Encoder IC

By Application

Automotive
Medical
Consumer Electronics
Industrial Automation
Aerospace & Defense
Other

Regional Analysis -

✔ North America (U.S., Canada, China)
✔ Europe (Germany, U.K., France, Italy, Russia, Spain, Rest of Europe)
✔ Asia-Pacific (Japan, South Korea, China Taiwan, Southeast Asia, India)
✔ Middle East, Africa, Latin America (Brazil, Mexico, Turkey, Israel, GCC Countries)

The analysis spans from 2024 (base year) to 2031 (forecast period).

Major Company Included: -

Broadcom
AMS
Melexis
TE Connectivity
IC-Haus
SEIKO NPC
RLS
ams OSRAM
Hamamatsu
Nisshinbo Micro Devices
Magntek

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Why should you purchase this report?

Purchasing this report provides you with a comprehensive and data-driven understanding of the market landscape, enabling informed business decisions and strategic planning. The report comes with free customization based on client requirements, including a country-level breakdown of any five countries of your choice and a competitive analysis of segment revenue by key market players. With detailed insights into market trends, growth drivers, challenges, competitive dynamics, and emerging opportunities, this report equips stakeholders, manufacturers, and investors with actionable intelligence to identify profitable prospects, optimize operations, and maintain a competitive edge in the industry.

How Can the Research Study Help your Business?

✔ The information presented in the Encoder IC report helps your decision makers to become prudent and make the best business choices.
✔ The report enables you to see the future of the global Encoder IC market and accordingly take decisions that will be in the best interest of your business.
✔ It offers you a forward-looking perspective of the global Encoder IC market drivers and how you can secure significant market gains in the near future.
✔ It provides SWOT analysis of the global Encoder IC market along with useful graphics and detailed statistics providing quick information about the market's overall progress throughout the forecast period.
✔ It also assesses the changing competitive dynamics of the global Encoder IC market using pin-point evaluation.

Key Questions Answered in the Report -

✔ What is the size and estimated growth rate of the global and regional Encoder IC market?
✔ Which countries are expected to display the strongest growth?
✔ Which region will dominate the market throughout the forecast period?
✔ What are the main factors driving or restraining market expansion?
✔ What technological advancements are shaping future demand?
✔ Where are the key opportunities for new entrants and established players?
✔ Which companies currently hold the highest market share?
✔ How will market dynamics evolve from 2025 to 2031?

Table of Contents - Major Key Points:

1 Market Overview
1.1 Encoder IC Product Introduction
1.2 Global Encoder IC Market Size Forecast
1.2.1 Global Encoder IC Sales Value (2020-2031)
1.2.2 Global Encoder IC Sales Volume (2020-2031)
1.2.3 Global Encoder IC Sales Price (2020-2031)
1.3 Encoder IC Market Trends & Drivers
1.3.1 Encoder IC Industry Trends
1.3.2 Encoder IC Market Drivers & Opportunity
1.3.3 Encoder IC Market Challenges
1.3.4 Encoder IC Market Restraints
1.4 Assumptions and Limitations
1.5 Study Objectives
1.6 Years Considered
2 Competitive Analysis by Company
2.1 Global Encoder IC Players Revenue Ranking (2024)
2.2 Global Encoder IC Revenue by Company (2020-2025)
2.3 Global Encoder IC Players Sales Volume Ranking (2024)
2.4 Global Encoder IC Sales Volume by Company Players (2020-2025)
2.5 Global Encoder IC Average Price by Company (2020-2025)
2.6 Key Manufacturers Encoder IC Manufacturing Base and Headquarters
2.7 Key Manufacturers Encoder IC Product Offered
2.8 Key Manufacturers Time to Begin Mass Production of Encoder IC
2.9 Encoder IC Market Competitive Analysis
2.9.1 Encoder IC Market Concentration Rate (2020-2025)
2.9.2 Global 5 and 10 Largest Manufacturers by Encoder IC Revenue in 2024
2.9.3 Global Top Manufacturers by Company Type (Tier 1, Tier 2, and Tier 3) & (based on the Revenue in Encoder IC as of 2024)
2.10 Mergers & Acquisitions, Expansion
3 Segmentation by Type
3.1 Introduction by Type
3.1.1 Magnetic Encoder IC
3.1.2 Optical Encoder IC
3.2 Global Encoder IC Sales Value by Type
3.2.1 Global Encoder IC Sales Value by Type (2020 VS 2024 VS 2031)
3.2.2 Global Encoder IC Sales Value, by Type (2020-2031)
3.2.3 Global Encoder IC Sales Value, by Type (%) (2020-2031)
3.3 Global Encoder IC Sales Volume by Type
3.3.1 Global Encoder IC Sales Volume by Type (2020 VS 2024 VS 2031)
3.3.2 Global Encoder IC Sales Volume, by Type (2020-2031)
3.3.3 Global Encoder IC Sales Volume, by Type (%) (2020-2031)
3.4 Global Encoder IC Average Price by Type (2020-2031)
4 Segmentation by Application
4.1 Introduction by Application
4.1.1 Automotive
4.1.2 Medical
4.1.3 Consumer Electronics
4.1.4 Industrial Automation
4.1.5 Aerospace & Defense
4.1.6 Other
4.2 Global Encoder IC Sales Value by Application
4.2.1 Global Encoder IC Sales Value by Application (2020 VS 2024 VS 2031)
4.2.2 Global Encoder IC Sales Value, by Application (2020-2031)
4.2.3 Global Encoder IC Sales Value, by Application (%) (2020-2031)
4.3 Global Encoder IC Sales Volume by Application
4.3.1 Global Encoder IC Sales Volume by Application (2020 VS 2024 VS 2031)
4.3.2 Global Encoder IC Sales Volume, by Application (2020-2031)
4.3.3 Global Encoder IC Sales Volume, by Application (%) (2020-2031)
4.4 Global Encoder IC Average Price by Application (2020-2031)
5 Segmentation by Region
5.1 Global Encoder IC Sales Value by Region
5.1.1 Global Encoder IC Sales Value by Region: 2020 VS 2024 VS 2031
5.1.2 Global Encoder IC Sales Value by Region (2020-2025)
5.1.3 Global Encoder IC Sales Value by Region (2026-2031)
5.1.4 Global Encoder IC Sales Value by Region (%), (2020-2031)
5.2 Global Encoder IC Sales Volume by Region
5.2.1 Global Encoder IC Sales Volume by Region: 2020 VS 2024 VS 2031
5.2.2 Global Encoder IC Sales Volume by Region (2020-2025)
5.2.3 Global Encoder IC Sales Volume by Region (2026-2031)
5.2.4 Global Encoder IC Sales Volume by Region (%), (2020-2031)
5.3 Global Encoder IC Average Price by Region (2020-2031)
5.4 North America
5.4.1 North America Encoder IC Sales Value, 2020-2031
5.4.2 North America Encoder IC Sales Value by Country (%), 2024 VS 2031
5.5 Europe
5.5.1 Europe Encoder IC Sales Value, 2020-2031
5.5.2 Europe Encoder IC Sales Value by Country (%), 2024 VS 2031
5.6 Asia Pacific
5.6.1 Asia Pacific Encoder IC Sales Value, 2020-2031
5.6.2 Asia Pacific Encoder IC Sales Value by Region (%), 2024 VS 2031
5.7 South America
5.7.1 South America Encoder IC Sales Value, 2020-2031
5.7.2 South America Encoder IC Sales Value by Country (%), 2024 VS 2031
5.8 Middle East & Africa
5.8.1 Middle East & Africa Encoder IC Sales Value, 2020-2031
5.8.2 Middle East & Africa Encoder IC Sales Value by Country (%), 2024 VS 2031
6 Segmentation by Key Countries/Regions
6.1 Key Countries/Regions Encoder IC Sales Value Growth Trends, 2020 VS 2024 VS 2031
6.2 Key Countries/Regions Encoder IC Sales Value and Sales Volume
6.2.1 Key Countries/Regions Encoder IC Sales Value, 2020-2031
6.2.2 Key Countries/Regions Encoder IC Sales Volume, 2020-2031
6.3 United States
6.3.1 United States Encoder IC Sales Value, 2020-2031
6.3.2 United States Encoder IC Sales Value by Type (%), 2024 VS 2031
6.3.3 United States Encoder IC Sales Value by Application, 2024 VS 2031
6.4 Europe
6.4.1 Europe Encoder IC Sales Value, 2020-2031
6.4.2 Europe Encoder IC Sales Value by Type (%), 2024 VS 2031
6.4.3 Europe Encoder IC Sales Value by Application, 2024 VS 2031
6.5 China
6.5.1 China Encoder IC Sales Value, 2020-2031
6.5.2 China Encoder IC Sales Value by Type (%), 2024 VS 2031
6.5.3 China Encoder IC Sales Value by Application, 2024 VS 2031
6.6 Japan
6.6.1 Japan Encoder IC Sales Value, 2020-2031
6.6.2 Japan Encoder IC Sales Value by Type (%), 2024 VS 2031
6.6.3 Japan Encoder IC Sales Value by Application, 2024 VS 2031
6.7 South Korea
6.7.1 South Korea Encoder IC Sales Value, 2020-2031
6.7.2 South Korea Encoder IC Sales Value by Type (%), 2024 VS 2031
6.7.3 South Korea Encoder IC Sales Value by Application, 2024 VS 2031
6.8 Southeast Asia
6.8.1 Southeast Asia Encoder IC Sales Value, 2020-2031
6.8.2 Southeast Asia Encoder IC Sales Value by Type (%), 2024 VS 2031
6.8.3 Southeast Asia Encoder IC Sales Value by Application, 2024 VS 2031
6.9 India
6.9.1 India Encoder IC Sales Value, 2020-2031
6.9.2 India Encoder IC Sales Value by Type (%), 2024 VS 2031
6.9.3 India Encoder IC Sales Value by Application, 2024 VS 2031
7 Company Profiles
7.1 Broadcom
7.1.1 Broadcom Company Information
7.1.2 Broadcom Introduction and Business Overview
7.1.3 Broadcom Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.1.4 Broadcom Encoder IC Product Offerings
7.1.5 Broadcom Recent Development
7.2 AMS
7.2.1 AMS Company Information
7.2.2 AMS Introduction and Business Overview
7.2.3 AMS Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.2.4 AMS Encoder IC Product Offerings
7.2.5 AMS Recent Development
7.3 Melexis
7.3.1 Melexis Company Information
7.3.2 Melexis Introduction and Business Overview
7.3.3 Melexis Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.3.4 Melexis Encoder IC Product Offerings
7.3.5 Melexis Recent Development
7.4 TE Connectivity
7.4.1 TE Connectivity Company Information
7.4.2 TE Connectivity Introduction and Business Overview
7.4.3 TE Connectivity Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.4.4 TE Connectivity Encoder IC Product Offerings
7.4.5 TE Connectivity Recent Development
7.5 IC-Haus
7.5.1 IC-Haus Company Information
7.5.2 IC-Haus Introduction and Business Overview
7.5.3 IC-Haus Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.5.4 IC-Haus Encoder IC Product Offerings
7.5.5 IC-Haus Recent Development
7.6 SEIKO NPC
7.6.1 SEIKO NPC Company Information
7.6.2 SEIKO NPC Introduction and Business Overview
7.6.3 SEIKO NPC Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.6.4 SEIKO NPC Encoder IC Product Offerings
7.6.5 SEIKO NPC Recent Development
7.7 RLS
7.7.1 RLS Company Information
7.7.2 RLS Introduction and Business Overview
7.7.3 RLS Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.7.4 RLS Encoder IC Product Offerings
7.7.5 RLS Recent Development
7.8 ams OSRAM
7.8.1 ams OSRAM Company Information
7.8.2 ams OSRAM Introduction and Business Overview
7.8.3 ams OSRAM Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.8.4 ams OSRAM Encoder IC Product Offerings
7.8.5 ams OSRAM Recent Development
7.9 Hamamatsu
7.9.1 Hamamatsu Company Information
7.9.2 Hamamatsu Introduction and Business Overview
7.9.3 Hamamatsu Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.9.4 Hamamatsu Encoder IC Product Offerings
7.9.5 Hamamatsu Recent Development
7.10 Nisshinbo Micro Devices
7.10.1 Nisshinbo Micro Devices Company Information
7.10.2 Nisshinbo Micro Devices Introduction and Business Overview
7.10.3 Nisshinbo Micro Devices Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.10.4 Nisshinbo Micro Devices Encoder IC Product Offerings
7.10.5 Nisshinbo Micro Devices Recent Development
7.11 Magntek
7.11.1 Magntek Company Information
7.11.2 Magntek Introduction and Business Overview
7.11.3 Magntek Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
7.11.4 Magntek Encoder IC Product Offerings
7.11.5 Magntek Recent Development
8 Industry Chain Analysis
8.1 Encoder IC Industrial Chain
8.2 Encoder IC Upstream Analysis
8.2.1 Key Raw Materials
8.2.2 Raw Materials Key Suppliers
8.2.3 Manufacturing Cost Structure
8.3 Midstream Analysis
8.4 Downstream Analysis (Customers Analysis)
8.5 Sales Model and Sales Channels
8.5.1 Encoder IC Sales Model
8.5.2 Sales Channel
8.5.3 Encoder IC Distributors
9 Research Findings and Conclusion
10 Appendix
10.1 Research Methodology
10.1.1 Methodology/Research Approach
10.1.1.1 Research Programs/Design
10.1.1.2 Market Size Estimation
10.1.1.3 Market Breakdown and Data Triangulation
10.1.2 Data Source
10.1.2.1 Secondary Sources
10.1.2.2 Primary Sources
10.2 Author Details
10.3 Disclaimer

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